5 Consider some bonds with one annual coupon payment of 7 00 The bonds have a par value of $1,000, a current price of $1,070, and they will mature in 19 years What is the yield to maturity on these bonds A 6 54 B 7 70 C 6 36 D 7 00 QUESTION 6 Sadik Inc s bonds currently sell for $830 and have a par value of $1,000 They pay a $100 annual coupon and have a 21 year maturity, but they can be called in 5 years at $1,030 What is their yield to call (YTC) A 10 00 B 12 05 C 12 29 D 15 58 QUESTION 7 Garvin Enterprises bonds currently sell for $950 They have a 14 year maturity, an annual coupon of $105, and a par value of $1,000 What is their current yield A 10 00 B 10 50 C 14 00 D 11 05 QUESTION 8 Assume that you are considering the purchase of a 7 year bond with an annual coupon rate of 7 0 The bond has face value of $1,000 and makes semiannual interest payments If you require an 10 0 nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond A 1000 B 1021 60 C 729 30 D 851 52 QUESTION 9 If 10 year T bonds have a yield of 6 0 , 10 year corporate bonds yield 8 0 , the maturity risk premium on all 10 year bonds is 1 0 , and corporate bonds have a 0 1 liquidity premium versus a zero liquidity premium for T bonds, what is the default risk premium on the corporate bond A 2 00 B 1 90 C 0 90 D 0 00 QUESTION 10 Wachowicz Corporation issued 10 year, noncallable, 6 0 annual coupon bonds at their par value of $1,000 one year ago Today, the market interest rate on these bonds is 5 0 What is the current price of the bonds, given that they now have 9 years to maturity A 1071 08 B 975 41 C 1000 D 1100 05

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5. Consider some bonds with one annual coupon payment of 7.00%. The bonds have a par value of $1,000, a current price of $1,070, and

5. Consider some bonds with one annual coupon payment of 7.00%. The bonds have a par value of $1,000, a current price of $1,070, and they will mature in 19 years. What is the yield to maturity on these bonds?

	A.	6.54%
	B.	7.70%
	C.	6.36%
	D.	7.00%

QUESTION 6

Sadik Inc.s bonds currently sell for $830 and have a par value of $1,000. They pay a $100 annual coupon and have a 21-year maturity, but they can be called in 5 years at $1,030. What is their yield to call (YTC)?

A.
10.00%

B.
12.05%

C.
12.29%

D.
15.58%

QUESTION 7

Garvin Enterprises bonds currently sell for $950. They have a 14-year maturity, an annual coupon of $105, and a par value of $1,000. What is their current yield?

A.
10.00%

B.
10.50%

C.
14.00%

D.
11.05%

QUESTION 8

Assume that you are considering the purchase of a 7-year bond with an annual coupon rate of 7.0%. The bond has face value of $1,000 and makes semiannual interest payments. If you require an 10.0% nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

A.
1000

B.
1021.60

C.
729.30

D.
851.52

QUESTION 9

If 10-year T-bonds have a yield of 6.0%, 10-year corporate bonds yield 8.0%, the maturity risk premium on all 10-year bonds is 1.0%, and corporate bonds have a 0.1% liquidity premium versus a zero liquidity premium for T-bonds, what is the default risk premium on the corporate bond?

A.
2.00%

B.
1.90%

C.
0.90%

D.
0.00%

QUESTION 10

Wachowicz Corporation issued 10-year, noncallable, 6.0% annual coupon bonds at their par value of $1,000 one year ago. Today, the market interest rate on these bonds is 5.0%. What is the current price of the bonds, given that they now have 9 years to maturity?

A.
1071.08

B.
975.41

C.
1000

D.
1100.05